Pago Pago, AMERICAN SAMOA — The ASG Commerce Department (DOC) is preparing to carry out an “economic impact study” for the territory as a result of the new ASG minimum wage, federal COVID-19 money, and the new federally mandated minimum wage hike for all industries in American Samoa, says Commerce director Petti Tagipo Matila during her department’s fiscal year 2022 budget review.

Matila made the revelation in response to one of the questions raised by Rep. Larry S. Sanitoa who noted the new ASG minimum wage, which went into effect on July 1st and the federal labor mandated minimum wage hike of 30 cents per hour increase starting Sept. 30th.

Sanitoa asked if DOC has conducted an “economic impact study” which covers both the government and private sector on the minimum wage hike, to which Matila responded that DOC is gathering data at this point from all ASG entities as well as working with the private sector.

She said DOC is not only looking at the impact of the federal COVID-19 money and the new ASG minimum but the mandated federal wage hike as well.  She acknowledged that there had been questions on why a study was not conducted in advance or prior to implementation of the ASG minimum wage.

“But as you see, all these things are moving at the same time. You have to look at it, before, and during, and after the event,” she said, noting that DOC is not the only one involved in this important issue as it will also include the private sector.

Gov. Lemanu Peleti Sialega Mauga informed lawmakers last month that American Samoa has been granted and is expected to receive $1.4 billion in COVID related funds — including money from the new federal American Rescue Plan Act (ARPA) signed into law earlier this year.

A provision of the ARPA, includes $10 billion to state and Tribal governments to fund small business credit expansion initiatives under the State Small Business Credit Initiative (SSBCI) program, which builds off on the inaugural model developed in 2011 during the Obama-Biden Administration, according to the US Treasury Department.

During the DOC budget hearing, Sanitoa sought an update on SSBCI funds allocated to the territory through ARPA, saying that a report was sought in March this year but he has yet to receive it.

Matila said American Samoa is allocated $5.6 million from ARPA under SSBCI program-two, and explained that SSBCI program-one has already expired — referring to the previous program under the Obama Administration.

She explained that DOC is awaiting “guidance and regulation” from the federal government for use of this money before moving forward. As to the previous SSBCI, she said that less than 10 local businesses received funds.

Sanitoa requested a report on the new SSBCI on how money will be spent and other information. He also requested a report on the first SSBCI to include businesses awarded funds and if there was any unused federal money that had to be returned.

As previously reported by Samoa News, American Samoa was awarded $10.5 million several years ago for the SSBCI, but efforts to get the program off the ground was met with obstacles.

Under the revamped program by the Lolo Administration in 2013, it was called, the American Samoa Venture Fund. And the program expired in 2017.

The local program requires investors or financial institutions to invest by matching the federal money awarded to each business. And this was the most difficult task faced by American Samoa, securing investors, and/or financial institutions to provide matching funds — as required for the SSBCI.

SUPER ALIA

Another issue of interest raised by Sanitoa during the hearing is the “substantial increase” in the DOC budget under “Contractual Service” and the Tualauta lawmaker sought an explanation.

Patila explained that the increase is the result of the “Super Alia” project funding from US Economic Development Administration (EDA) late last year. She said the bidding process through Procurement Office is completed and the department is waiting for the awarding of the contract.

EDA awarded $4.4 million last December for project, also called the “alia tele” which ASG has touted over the previous three years as the “future commercial fishing vessel” that can go further out at sea and stay out longer fishing than the current traditional alias.

In May this year, the Procurement Office issued a Request for Proposals (RFP) for the “Purchase of Four Fishing Vessels Constructed to Technical Specifications”. The closing date was June 7th. (See Samoa News edition May 6th for details.)

Meanwhile, Sanitoa along with other lawmakers requested a report from Patila on DOC’s plans for upgrading and development of Lions Park — which includes a new educational tech center, a new hospital, a technology park and an update to the shoreline.

While the plan is not yet finalized, DOC had petitioned other ASG entities for their input. (See Samoa News online July 6th for details of the Lions Park proposed development.)